1. Weekly News

Bangladesh

Onion Prices Surged in Khulna Despite Peak Harvest Season

Onion prices in Khulna spiked sharply in W16, rising from USD 0.25 to 0.29 per kilogram (kg) to USD 0.39 to 0.41/kg wholesale and up to USD 0.49/kg in retail, despite the peak harvest season. Consumers blame the sudden hike on weak market monitoring and alleged hoarding by traders exploiting fears of a potential ban on Indian onion imports. Reports suggest traders in areas like Jhenaidah, Rajbari, and Kushtia are stockpiling instead of releasing onions. Wholesalers note that panic buying and household stockpiling are further inflating prices. Shoppers are urging the government to reinstate the strict market monitoring seen during Ramadan and Eid.

India

Karnataka Struggles With Onion Storage Despite Being Second Largest Producer

Despite being India’s second-largest onion producer, Karnataka is experiencing a severe storage crisis. The bumper harvest in the 2024/25 season has led to a sharp fall in wholesale prices, down to USD 0.16 to 0.25/kg in Bengaluru, forcing farmers into distress sales. Yet, retail prices remain elevated at USD 0.29 to 0.33/kg and can soar to USD 1.17/kg during the lean October to November period, highlighting the mismatch between production and market availability due to poor post-harvest infrastructure. Karnataka produces around 3.89 million metric tons (mmt) of onions annually, second only to Maharashtra. However, its storage capacity stands at a meager 375 thousand metric tons (mt), far below what is needed to stabilize the market. This shortfall discourages small and marginal farmers from planting Rabi and summer onion crops despite their higher yield and better storability than the monsoon crop.

According to the Potato-Onion Merchants’ Association in Bengaluru, at least one 10 thousand mt central storage facility is needed in every district. Such infrastructure would empower farmers to grow storable onion varieties and help control price spikes during lean months. Ironically, Karnataka still struggles to meet its demand despite having ideal conditions for onion cultivation. With better storage and logistics, Maharashtra continues to supply the shortfall. Dryland districts such as Vijayapura, Gadag, Ballari, Koppal, Dharwad, Belagavi, Chitradurga, and Kolar are among the state’s major producers. Yet, none currently host large-scale storage infrastructure, leaving Karnataka’s onion economy vulnerable and inefficient.

Ukraine

Ukrainian Onion Prices Surged 55% WoW in W16 Due to Supply Shortage and Strong Demand

For the first time in 2025, Ukrainian yellow onion prices significantly increased, driven by dwindling farm stocks and increased wholesale demand. Prices ranged from USD 0.34 to 0.49/kg in W16, a 55% week-on-week (WoW) increase. Despite the spike, demand continues to grow, with high-quality onions in short supply. Many farms have exhausted their stocks, while others are halting sales, prompting panic buying and further price acceleration. Prices are now 59% year-on-year (YoY) higher and the trend is expected to persist until the new harvest arrives in volume.

2. Weekly Pricing

Weekly Onion Pricing Important Exporters (USD/kg)

Yearly Change in Onion Pricing Important Exporters (W16 2024 to W16 2025)

India

In W16, Indian onion prices dropped by 13.33% WoW, 23.53% month-on-month (MoM), and 13.33% YoY to USD 0.13/kg, driven by ongoing oversupply pressures. The government removed the 20% export duty on April 1, 2025, following a steep 39% decline in wholesale prices, aiming to boost farmer incomes by encouraging exports. While the move may provide short-term relief, its long-term effectiveness depends on international demand. If export demand rises significantly, it could stabilize or lift prices. Otherwise, continued high domestic supply may keep prices suppressed despite better export opportunities.

Netherlands

In W16, onion prices in the Netherlands surged 23.33% WoW, 68.18% MoM, and 146.67% YoY to USD 0.37/kg, fueled by tight domestic supply and robust export demand. The 2023/24 harvest was severely impacted by excessive autumn rainfall, especially in Zeeland and Flevoland, leading to delayed harvests and storage losses due to increased rot. Consequently, marketable stocks by early 2025 were nearly 25% below the five-year average. At the same time, strong export demand, particularly from West Africa (Senegal, Côte d’Ivoire) and Southeast Asia boosted shipments to over 1.3 mmt in Q1-2025, up 5% YoY. Moreover, an 18% YoY increase in energy and storage costs also added to upward pricing pressure.

Egypt

​In W16, Egypt's wholesale onion prices increased by 8.33% WoW and MoM, reaching USD 0.13/kg. This price rise follows a period of significant overproduction, where the 2024 harvest exceeded 3 mmt due to farmers expanding cultivation in response to prior shortages and high prices. However, demand for Egyptian onions has remained low in 2025 domestically and internationally, leading to surplus stock and initial price declines. The recent uptick in prices may be due to the gradual absorption of excess supply and the onset of the new export season, which stimulated market activity. Moreover, climatic challenges and increased production costs have impacted profitability, potentially influencing market dynamics and increasing prices.

Spain

In W16, Spanish onion prices rose by 23.08% WoW and 64.10% MoM to USD 0.64/kg, driven by a tightening domestic supply and strong export demand. Spain’s 2024/25 onion production will decline by 4.3% YoY to 1.12 mmt due to a 7.1% decrease in planted area in Castilla-La Mancha to 19,800 hectares (ha), compounded by erratic spring temperatures that hindered crop growth. Despite this, sustained demand from export markets like France and Germany continues to push prices upward.

3. Actionable Recommendations

Enhance Storage Infrastructure in Karnataka and Other Key Regions

India should prioritize building large-scale onion storage facilities in regions such as Karnataka, where the production significantly exceeds storage capacity. Farmers can store their crops for extended periods, preventing distress sales when prices are low and allowing them to sell at better market prices during lean periods. This infrastructure will help stabilize the onion market by mitigating the adverse effects of oversupply during peak harvest seasons and price spikes during off-seasons. Moreover, these storage solutions will encourage farmers to shift towards growing onion varieties suitable for long-term storage. The improved storage capacity will reduce price volatility, provide a more consistent supply, and help increase farmers' profitability by eliminating the need for rushed sales during harvest peaks. Ultimately, this investment in storage infrastructure will benefit farmers, through better income stability and consumers by ensuring a more consistent onion supply year-round.

Strengthen Market Monitoring and Regulation in Bangladesh

Bangladesh should implement stricter market monitoring and establish transparent reporting systems to track onion stocks, particularly in areas like Khulna, where hoarding and price manipulation have led to inflated prices. By closely monitoring stock levels and transactions, authorities can quickly identify and address irregularities such as hoarding, ensuring that traders do not artificially inflate prices. This can be done by requiring traders to report their stock volumes and sales, with penalties for non-compliance or engaging in practices like hoarding or price manipulation. The transparency of this system will provide consumers with accurate price information, reducing the likelihood of panic buying and ensuring that prices remain more stable.

Facilitate Export Opportunities for Surplus Onion Stock in Ukraine

Encourage the export of surplus onions from Ukraine, especially during the period of low local demand and high international demand. Facilitate trade agreements with countries experiencing onion shortages, particularly in Europe and the Middle East. This would help Ukrainian farmers clear excess stock, stabilize domestic prices, and take advantage of higher export prices, ensuring better profitability. It will also strengthen Ukraine’s position in the international onion market.

Sources: Tridge, Daiji World, North Africa Post, Tbs News